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Derivatives And Risk Management (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedges, Assets [Abstract]  
Energy Commodity Derivatives
The following table presents the underlying energy commodity derivative volumes as of September 30, 2014 that are expected to be delivered in each respective year (in thousands of MWhs and mmBTUs):
 
Purchases
 
Sales
 
Electric Derivatives
 
Gas Derivatives
 
Electric Derivatives
 
Gas Derivatives
Year
Physical (1)
MWH
 
Financial (1)
MWH
 
Physical (1)
mmBTUs
 
Financial (1)
mmBTUs
 
Physical (1)
MWH
 
Financial (1)
MWH
 
Physical (1)
mmBTUs
 
Financial (1)
mmBTUs
2014
237

 
720

 
12,660

 
39,325

 
138

 
885

 
1,496

 
24,288

2015
508

 
2,436

 
13,413

 
115,860

 
254

 
2,935

 
1,490

 
89,925

2016
397

 
948

 
2,505

 
63,173

 
287

 
1,634

 
910

 
52,713

2017
397

 
—

 
675

 
2,895

 
286

 
—

 
—

 
2,895

2018
397

 
—

 
—

 
—

 
286

 
—

 
—

 
—

Thereafter
235

 
—

 
—

 
—

 
158

 
—

 
—

 
—

 
(1)
Physical transactions represent commodity transactions where Avista Utilities will take delivery of either electricity or natural gas and financial transactions represent derivative instruments with no physical delivery, such as futures, swaps or options.
Foreign Currency Exchange Contracts
The following table summarizes the foreign currency hedges that the Company has entered into as of September 30, 2014 and December 31, 2013 (dollars in thousands):
 
September 30,
 
December 31,
 
2014
 
2013
Number of contracts
23

 
23

Notional amount (in United States dollars)
$
15,734

 
$
8,631

Notional amount (in Canadian dollars)
17,326

 
9,191
Interest Rate Swap Agreements
The following table summarizes the interest rate swaps that the Company has entered into as of September 30, 2014 and December 31, 2013 (dollars in thousands):
Balance Sheet Date
 
Number of Contracts
 
Notional Amount
 
Mandatory Cash Settlement Date
September 30, 2014
 
2
 
$
50,000

 
2014
 
 
5
 
75,000

 
2015
 
 
5
 
95,000

 
2016
 
 
3
 
45,000

 
2017
 
 
7
 
155,000

 
2018
December 31, 2013
 
2
 
50,000

 
2014
 
 
2
 
45,000

 
2015
 
 
2
 
40,000

 
2016
 
 
1
 
15,000

 
2017
 
 
4
 
95,000

 
2018
Derivative Instruments Summary
The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of September 30, 2014 (in thousands):
 
 
 
 
Fair Value
Derivative
 
Balance Sheet Location
 
Gross
Asset
 
Gross
Liability
 
Collateral
Netting
 
Net Asset
(Liability)
in Balance
Sheet
Foreign currency contracts
 
Other current liabilities
 
$
—

 
$
(280
)
 
$
—

 
$
(280
)
Interest rate contracts
 
Other current assets
 
7,106

 
—

 
—

 
7,106

Interest rate contracts
 
Other property and investments - net
 
4,933

 
(3,786
)
 
—

 
1,147

Interest rate contracts
 
Other non-current liabilities and deferred credits
 
1,261

 
(30,699
)
 
12,730

 
(16,708
)
Commodity contracts (1)
 
Current utility energy commodity derivative assets
 
11,371

 
(8,037
)
 
—

 
3,334

Commodity contracts (1)
 
Non-current utility energy commodity derivative assets
 
10,639

 
(8,946
)
 
—

 
1,693

Commodity contracts (1)
 
Current utility energy commodity derivative liabilities
 
21,002

 
(26,060
)
 
49

 
(5,009
)
Commodity contracts (1)
 
Other non-current liabilities and deferred credits
 
10,537

 
(25,383
)
 
886

 
(13,960
)
Total derivative instruments recorded on the balance sheet
 
$
66,849

 
$
(103,191
)
 
$
13,665

 
$
(22,677
)
The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 2013 (in thousands):
 
 
 
 
Fair Value
Derivative
 
Balance Sheet Location
 
Gross
Asset
 
Gross
Liability
 
Collateral
Netting
 
Net Asset
(Liability)
in Balance
Sheet
Foreign currency contracts
 
Other current assets
 
$
7

 
$
(6
)
 
$
—

 
$
1

Interest rate contracts
 
Other current assets
 
13,968

 
—

 
—

 
13,968

Interest rate contracts
 
Other property and investments - net
 
19,575

 
—

 
—

 
19,575

Commodity contracts (1)
 
Current utility energy commodity derivative assets
 
7,416

 
(4,394
)
 
—

 
3,022

Commodity contracts (1)
 
Non-current utility energy commodity derivative assets
 
7,610

 
(6,756
)
 
—

 
854

Commodity contracts (1)
 
Current utility energy commodity derivative liabilities
 
23,455

 
(37,306
)
 
2,976

 
(10,875
)
Commodity contracts (1)
 
Other non-current liabilities and deferred credits
 
17,101

 
(41,213
)
 
5,756

 
(18,356
)
Total derivative instruments recorded on the balance sheet
 
$
89,132

 
$
(89,675
)
 
$
8,732

 
$
8,189


(1)
Avista Corp. had a master netting agreement that governed the transactions of multiple affiliated legal entities under this single master netting agreement. This master netting agreement allowed for cross-commodity netting (i.e. netting physical power, physical natural gas, and financial transactions) and cross-affiliate netting for the parties to the agreement. Avista Corp. performed cross-commodity netting for each legal entity that is a party to the master netting agreement for presentation in the Condensed Consolidated Balance Sheets; however, Avista Corp. did not perform cross-affiliate netting because the Company believed that cross-affiliate netting may not be enforceable. Therefore, the requirements for cross-affiliate netting under ASC 210-20-45 were not applicable for Avista Corp. As of December 31, 2013, all derivatives for each affiliated entity under this master netting agreement were in a net liability position. As such, there was no additional netting which required disclosure for that period. In May 2014, this master netting agreement was terminated and each affiliated legal entity is now under their own separate agreement. As of September 30, 2014, the Company no longer has any agreements where cross-affiliate netting is allowed under the agreement, but not performed by the Company.